Mahila Uddyami Scheme

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Status: Active

Classification: Public Sector Scheme

Release Date(s):
28th May 2022
16th December 2020

Offering: Loan/Credit

Entity Type: Central Government

Reading Time: 5 Mins

Ticket Size: Upto ₹10 Lakhs

Entity Name: Pradhan Mantri Mudra Yojna

#Views: 75

Disclaimer….before you read ahead!

The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updation, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.

Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this email.


About the scheme…

To bolster the large underserved Micro-enterprises in our country, PMMY was launched along with its umbrella entity Micro Units Development & Refinance Agency Ltd (MUDRA), to develop and refinance such Micro – enterprises, on 08 April 2015, by Government of India.

A sub-set of PMMY is Mahila Uddyami Scheme, focused entirely on women entrepreneurs running Micro – enterprises across the country.


How is it being implemented?

MUDRA, through PMMY, aims to develop and refinance Micro-enterprises by supporting the Last Mile Finance Institutions (FIs) lending to micro/small business entities engaged in manufacturing, trading and service activities.


What’s on offer?
I. Product: 

Overdraft or term loans facility upto ₹10 Lakhs further classified under three products based on stages of growth, development and funding needs of a Micro-enterprise:

  • Shishu Loans upto ₹50,000 including for those who are yet to start an enterprise
  • Kishor Loans above ₹50,000 upto ₹5 Lakhs
  • Tarun Loans above ₹5 Lakhs and upto ₹10 Lakhs

II. Purpose:

  • Acquisition of fixed assets
  • Working capital requirements

III. Borrower Type

  • Individual (18 to 65 years), sole proprietorship, partnership firm, private limited company or any other entity

IV. Security or Collateral or Guarantee or Insurance

  • Nil as these loans are secured under the guarantee cover provided by Credit Guarantee Fund for Micro Units (CGFMU)
  • However, first charge on all assets created out of the loan extended or assets which are directly associated with the business/project for which loan has been extended
  • Information around requirement of insurance can be checked with your Lender FI

V. Interest Rate

  • Reasonable
  • Deregulated, but within limits laid out per RBI guidelines around these loans
  • Women entrepreneurs may get further interest rate reduction of 0.25% as a pass through, given that MUDRA offers such reduction while refinancing NBFCs lending to women entrepreneurs

VI. Processing fee

  • Nil processing fee for Shishu Loans
  • For Kishor & Tarun Loans, processing fee is charged per Lender FI’s internal guidelines. Few banks charge nil processing fee

VII. Margin money requirement

  • Varies from nil to 25% depending on Lender FI

VIII. Tenure

  • Upto 5 years max. However, in some specific cases, it may exceed up to 7 years


Interested? Read ahead to check your eligibility….

I. Are you setting up or running a Micro-enterprise defined per MSMED Act, meaning Investment in Plant & Machinery or Equipment of your Enterprise does not exceed ₹1 Crores and Turnover does not exceed ₹5 Crores?

II. Does the business activity fall in the non-farm sector say, manufacturing, processing, trading or services?

III. Is the business activity income generating?

IV. Is your financial holding in the enterprise at least 50%?

If your answers to the questions above are an emphatic YES, you are all set to avail loans under the Stand-up India Scheme!


So…how big is this scheme and what has been done so far?

Since its launch in 2015 and until 2020-21 i.e. in 6 years,

  • Around ₹15.5 Lakh Crores sanctioned and ₹15.1 Lakh Crores disbursed across 29.6 Crores accounts
  • Of these, around ₹6.8 Lakh Crores (43%) sanctioned and ₹6.4 Lakh Crores (43%) disbursed across 20.0 Crores accounts (68%) of women entrepreneurs

During 2020-21,

  • Around ₹3.2 Lakh Crores sanctioned and ₹3.1 Lakh Crores disbursed across 5.1 Crores accounts
  • Of these, around ₹1.3 Lakh Crores (41%) sanctioned and ₹1.3 Lakh Crores (41%) disbursed across 3.3 Crores accounts (66%) of women entrepreneurs
  • Of the nearly ₹1.3 Lakh Crores sanctioned to women entrepreneurs, ₹74.5 Thousand Crores (57%) were under Shishu Loans, ₹50.7 Thousand Crores (39%) under Kishore Loans and the balance ₹6.1 Thousand Crores (5%) under Tarun Loans


So, now, how should you go about it?

I. Reach out to your FI or FI nearest to you – Commercial Banks, Small Finance Banks, Co-operative Banks, Regional Rural Banks, NBFCs. But first make sure they are “Shortlisted for Partnering MUDRA” under “Offerings” tab at

II. Alternatively, you can apply online through by registering yourself and your application shall be viewed by many lenders

  • This portal also has a HAVE facility i.e. Handholding in a Virtual Environment w.r.t filling in loan application form on your behalf, that you can avail post registration
  • You may also reach them at National Toll Free Number 1800 180 1111/1800 11 0001 for any queries

III. For information on application form & indicative list of documentation requirement, click here or here

To know how it worked well for many others like you, check this link out


Go on then…and do spread the word!



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